2015S0474-2 03/13/15

By: Seliger S.B. No. 1927

A BILL TO BE ENTITLED

AN ACT

relating to the investment of a portion of the economic stabilization fund balance.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter C, Chapter 404, Government Code, is amended by adding Section 404.0241 to read as follows:

Sec. 404.0241. INVESTMENT OF CERTAIN ECONOMIC STABILIZATION FUND BALANCES. (a) The comptroller, with the approval of the Legislative Budget Board under Subsection (c), may invest an amount of the economic stabilization fund equal to the sufficient balance adopted under Section 316.092(d) for the applicable state fiscal biennium in accordance with the investment standard described by Section 404.024(j). The comptroller's investment under this subsection is not subject to any other limitation or other requirement provided by Section 404.024.

(b) The comptroller, with the approval of the Legislative Budget Board under Subsection (c), shall adjust the investment portfolio of economic stabilization fund money periodically to ensure that, as appropriated money is withdrawn or money is otherwise transferred from the fund or as the sufficient balance adopted under Section 316.092(d) changes, only the amount of funds specified by Subsection (a) is invested in a manner that does not comply with all limitations and other requirements of Section 404.024.

(c) Not later than February 1 of each year, the comptroller, in consultation with the investment advisory board established under Section 404.028, shall submit to the Legislative Budget Board at least two investment plans detailing proposed investments under Subsection (a) or adjustments under Subsection (b). At least one of the proposed investment plans may not provide for any participation by the Texas Treasury Safekeeping Trust Company. Not later than the 30th day after the date of receiving proposed investment plans from the comptroller, the Legislative Budget Board shall conduct and the comptroller shall attend a public hearing on the proposed investment plans. The Legislative Budget Board shall approve or disapprove each proposed investment plan not later than the 10th day after the date of the hearing. If, after the 10th day after the date of a hearing, the Legislative Budget Board has not approved an investment plan, the comptroller may, not later than the 40th day after the date of the hearing, submit additional investment plans to the board in the manner described by this section.

(d) Not later than January 1 of each year, the Legislative Budget Board, in consultation with the comptroller, shall publish an annual report on the risk-adjusted performance of investments under this section during the fiscal year ending on the preceding August 31. The comptroller shall provide the Legislative Budget Board with the information the board requests regarding the performance of the investments under this section and, at the request of the board, shall appear before the board to present information and receive questions and comments. The annual report must include:

(1) statements of assets and a schedule of changes in book value of the investments under this section;

(2) a summary of the gains, losses, and income from investments under this section on August 31;

(3) an itemized list of the securities held as investments under this section on August 31; and

(4) any other information needed to clearly indicate the nature and extent of the investments under this section and the income realized from those investments.

(e) The comptroller and the Legislative Budget Board shall each make the report described by Subsection (d) available on the respective agency's Internet website.

(f) Funds invested under this section are considered for all purposes to be part of the economic stabilization fund.

SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.